After much delay the Nepal Stock Exchange (Nepse) — only secondary bourse of the country — is finally set to launch the fully automated trading system from Tuesday.

Nepse is launching the fully automated share trading system on the direction of the Securities Board of Nepal (SEBON) — the securities market and commodities exchange regulator of the country — according to Nepse Spokesperson Murahari Parajuli.

The Securities Registration and Issue Regulation, 2017, has a provision of online trading system and Nepse is all set to introduce that guideline.

“We are now ready to launch the fully automated online trading system,” said Parajuli. “The issues related to the software have been sorted out and the system functioned without any glitches during the recent trial.”

On July 3, Nepse had tested the User Acceptance Testing (UAT) of the software to create online stock trading system, which will allow
investors to post purchase and sales order and provide them payment, clearing and settlement facilities.

According to Parajuli, Nepse has installed a high-speed trading system for fast transactions. “We have installed a 50-microsecond per transaction capacity system,” he said, further informing that the Bombay Stock Exchange of India has the fastest online transaction system in the world, which works at six microseconds per transaction.

Meanwhile, Nepse had earlier conducted a test of software to be installed for online trading, which has been developed by YCO Pvt Ltd. Nepse had purchased the software from YCO at a cost of Rs 6.4 million.

On October 2, Nepse had decided to set up its central data server within its building in Bhadrakali. The dispute between stockbrokers, software and hardware vendor company YCO and Nepse has been settled and a decision has been
taken to set up the data centre in the share market building.

From now onwards, share investors will first need to visit sharebrokers to open a personal account and then they can conduct share trading through an online system by sitting at home, or from office or from anywhere where internet facility is available, Parajuli said.

The new technology, which has been on trial since the very first day of the current fiscal year, aims to make domestic stock activities at an international standard.

The online trading system in the stock market is expected to take the country’s stock market to a new height and non-resident Nepalis will also be able to invest in the country’s stock market.

The brokerage firms will provide accounts to clients through which they will be able to place their order of sale and purchase through use
of internet. Nepse has said that it will also add some features for margin trading as the securities market regulator has recently issued directives for the same.

A version of this article appears in print on November 06, 2018 of The Himalayan Times.